R-2012-179-2012-12-10 RESOLUTION NO. R2012-179
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, DECLARING INTENTION TO REIMBURSE
CAPITAL EXPENDITURES.
WHEREAS, the City Council of the City of Pearland, Texas (the "City") has
previously approved, and the City is proceeding with, its capital expenditures program,
the general purpose and function of which is to make certain capital improvements
described in Exhibit A hereto (herein, the "Project");
WHEREAS, the City expects to issue certain tax-exempt obligations in 2013 and
2014, including its Certificates of Obligation and its General Obligation Bonds (collectively,
the "Obligations"), which are currently expected to be issued in a maximum aggregate
principal amount of approximately $32,000,000, all of the proceeds of which are expected
to be used to provide funds to permanently finance the capital costs of the Project and pay
costs of issuance of the Obligations;
WHEREAS, no funds of the City are, or are reasonably expected to be, allocated,
reserved, or otherwise set aside in the City's budget to pay the costs of the Project;
WHEREAS, the Obligations will be payable from debt service taxes levied,
assessed and collected by the City;
WHEREAS, the City anticipates that prior to the issuance of the Certificates of
Obligation, it will be obligated to pay certain costs in connection with the Project
constituting expenditures properly chargeable to a capital account (under general federal
income tax principles) which were or will be incurred up to 60 days prior to the date hereof,
including expenditures for the items listed on Exhibit A hereto as Certificate Expenditures,
in the aggregate amount of not more than $2,500,000;
RESOLUTION NO. 2012-179
WHEREAS, the money to be used to pay the Certificate Expenditures set forth in
this Resolution is in the City's General Fund, the general purpose and function of which is
to pay operating and maintenance expenditures of the City and other lawfully available
funds of the City, and such funds are not appropriated for any other purpose;
WHEREAS, the City anticipates that prior to the issuance of the General Obligation
Bonds, it will be obligated to pay certain costs in connection with the Project constituting
expenditures properly chargeable to a capital account (under general federal income tax
principles) which were or will be incurred up to 60 days prior to the date hereof, including
expenditures for the items listed on Exhibit A hereto as General Expenditures, in the
aggregate amount of not more than $9,100,000;
WHEREAS, the money to be used to pay the General Expenditures set forth in this
Resolution is in the City's General Fund, the general purpose and function of which is to
pay operating and maintenance expenditures of the City and other lawfully available funds
of the City, and such funds are not appropriated for any other purpose;
WHEREAS, the City reasonably expects to reimburse itself for the Certificate
Expenditures and the General Expenditures (collectively, the "Expenditures") with
proceeds of the Obligations;
WHEREAS, after the issuance of the Obligations the City will: (1) evidence each
allocation of proceeds of the Obligations to the reimbursement of the Expenditures with
separate entries in its books and records maintained with respect to the Obligations, and
(2) identify in such entries the actual prior Expenditures being reimbursed or the fund from
which the Expenditures was made.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS:
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RESOLUTION NO. 2012-179
Section 1. The City Council hereby adopts the findings set out in the preamble
hereof and declares its intent within the meaning of Treasury Regulation § 1.150-2, as
promulgated under the Internal Revenue Code of 1986, as amended, to issue
approximately $32,000,000 principal amount of Obligations to pay the costs of the Project,
some of which is expected to be used to reimburse the City for capital expenditures paid in
connection with the Project prior to the issuance of the Obligations, and to pay costs of
issuance of the Obligations.
Section 2. The City will maintain this Resolution at the office of the City at 3519
Liberty Drive, Pearland, Texas 77581 and make it continuously available for inspection by
the general public during normal business hours on business days beginning within 30
days after the date of this Resolution.
PASSED, APPROVED and ADOPTED this the 10th day of December, A.D.,
2012.
TOM REID
MAYOR
ATTEST:
C UNG I G R ` ' '
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APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
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Exhibit A
Description of Expenditures To Be Reimbursed
Certificate Expenditures $3,500,000
Intelligent traffic system,public safety
improvements,trail
General Expenditures $9,100,000
Street and road improvements, drainage
improvements, parks